Indian Stock Market Tips- Nifty outlook or Price Performance
Global Markets Have Fallen Sharply, FII & PRO Created Huge Short Positions, Market May Fall Heavily
US market has been continuously falling from last 3 weeks; the Index has fallen by 14% from its high of 2800 to 2416 breaking its crucial support level of 2530. Major Players of the Market, FII and PRO have sold 192717 contracts in Index options in a single day, and in the current expiry, they have sold 249833 contracts which suggest further weakness in the markets.
Indian market benchmark Nifty was rising from last seven days until Friday when markets fell by 1.81% in a single day. There has been a huge divergence between the Indian market and global markets. Nikkei Japanese Index has fallen almost 6%, Hang Seng Hong Kong Index has also fallen by 1.3% in a current week. All major global indices are trading below their respective monthly and weekly lows, whereas until Friday, Indian market was trading at their monthly highs. Global and Indian Market Divergence Gap may reduce with Indian Markets fall.
It has been researched that between 2007 and 2008, same divergence took place between Indian and Global markets by 25% on Oct 2007, this got normalized on 22 Jan 2008.
Nifty is in positive by 2.1% in YTD, whereas S&P is down by 9.6% YTD, therefore there is a correlation gap of 11.7% between Nifty and S&P which is a danger signal for our markets. However, if S&P rallies to 2700, we can expect relief in our markets. Small cap Index is also trading near its previous month high of 6341.
The GST Council on Saturday reduced tax rates on 23 goods and services, including movie tickets, TV/monitors screens, and power banks, and exempted frozen and preserved vegetables from the levy. The reduced rates are likely to come into effect from January 1, 2019, finance minister Arun Jaitley told reporters after the 31st meeting of Goods and Services Tax (GST) Council in the national capital.
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